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Tissue Regenix warns of lower revenues and EBITDA
17th Oct 2019 08:03
(Sharecast News) - Regenerative medical devices group Tissue Regenix warned on Thursday that full-year revenues would be roughly 15-20% lower than anticipated after a delay in bringing increased manufacturing capabilities onstream.
Tissue Regenix had previously stated that sales in the current year would be "significantly weighted towards the second half", as its ability to bring onstream increased manufacturing capabilities would be key to determining the Company's year-end outcome.
While the AIM-listed firm expects the increase in throughput to become available during the fourth quarter, revenues still looked set to come in below the current market consensus, with a corresponding reduction in margins impacting EBITDA.
Tissue Regenix said demand for its products remained strong and that it did not anticipate any long-term impact besides the three-month delay to its manufacturing capacity increase.
Elsewhere, the group received confirmation of a $300,000 grant from Universal City to support the build-out of its newly leased 21,000 square foot facility in San Antonio, Texas.
Executive chairman John Samuel said: "We have excellent products for which demand is exceeding our current capacity.
"Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand."
As of 1300 BST, Tissue Regenix shares had sunk 10.94% to 2.85p.
Tissue Regenix had previously stated that sales in the current year would be "significantly weighted towards the second half", as its ability to bring onstream increased manufacturing capabilities would be key to determining the Company's year-end outcome.
While the AIM-listed firm expects the increase in throughput to become available during the fourth quarter, revenues still looked set to come in below the current market consensus, with a corresponding reduction in margins impacting EBITDA.
Tissue Regenix said demand for its products remained strong and that it did not anticipate any long-term impact besides the three-month delay to its manufacturing capacity increase.
Elsewhere, the group received confirmation of a $300,000 grant from Universal City to support the build-out of its newly leased 21,000 square foot facility in San Antonio, Texas.
Executive chairman John Samuel said: "We have excellent products for which demand is exceeding our current capacity.
"Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand."
As of 1300 BST, Tissue Regenix shares had sunk 10.94% to 2.85p.